The Economic Times writes on Bangalore’s role in nurturing GCCs – Global capability centres: Incubate for innovation

In August 2019, Harvard Business Review published the article, ‘Digital Doesn’t Have to be Disruptive’ ( by Nathan Furr and Andrew Shipilov, which highlighted that best results come from adaptation rather than reinvention. The article describes how various companies have had to transform themselves as they were disrupted by ‘digital’ newbies.

What clearly stood out in Furr and Shipilov’s piece was that at the heart of every digital transformation was the customer. In the US, every industry is a target of disruption, putting immense pressure on US enterprises to continue to innovate. Most large US corporations have capability centres around the world, and these centres are driving innovation and the transformation agenda.

The Mecca for such capability centres continues to be India. At a time when the Indian government is focused on digital transformation, US President Donald Trump’s two-day visit to India should further open up opportunities in the emerging technology space, positively impacting capability centres in India.

Twenty years after Texas Instruments had set up its first ‘captive’ — now called global capability centre (GCC) — in Bangalore, more than 1,600 companies have followed suit. Over 60% of these companies are headquartered in the US. While the initial driver for setting up such capability centres was cost arbitrage, today US corporations are increasingly looking at these centres to source quality talent globally and drive innovation.